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  • Writer's pictureChad Eliason

Choosing the Right Mortgage for You: New Application, Refinance and Renewals

When it comes to considering mortgage options for your Shuswap home, you want to ensure you’re choosing the loan that’s right for you. There are many factors that go into selecting a mortgage product; depending on both your current housing circumstances and what your plans are for the future. Your ability to obtain an approval may also be impacted by the new changes announced by The Canadian Mortgage Housing Corp. (CMHC) which affected the borrowing rules for home buyers, as of July 1st, 2020.

Some good news to come out of the announcement is that private sector insurers, like Genworth Financial and Canada Guaranty Mortgage Insurance Co., have confirmed they don’t plan on moving forward with the changes that the CMHC is making. However, some unique properties may not be eligible for Genworth or Canada Guaranty, leaving you at the mercy of CMHC’s new insurance criteria.

To determine which kind of mortgage application may best suit your needs, let’s review them below:

New Mortgage Application

If you’re looking to become a new homeowner or are getting back into the Salmon Arm real estate market, you’ll need to complete a new mortgage application. You’ll be asked to provide personal information like your name, phone number, current address, social insurance number and employment details to your mortgage professional. You’ll also need to offer your financial history pertaining to your assets and liabilities, with supporting documentation, as well as a full description or accepted offer on the property you’re interested in purchasing. If you’re considering a mortgage pre-approval, reach out to me as soon as possible and we'll determine your new affordability metrics to ensure you can shop the market confidently.

Refinancing Your Mortgage With ever-changing mortgage rates, you may be tempted to find out if a refinance is right for you. In many circumstances, a refinance can lower monthly mortgage payments and decrease the amount of interest you’ll pay across your mortgage term.

In addition, if your goal is to consolidate debt, cover larger expenses, or take advantage of an investment opportunity, then refinancing your current mortgage may work for you. Maybe you’re itching to tackle that kitchen renovation, or your scholar child just got accepted into a university and you’ll be aiding with tuition; whatever the reason may be, refinancing could be the solution for you. It’s important to consider renegotiating your loan agreement towards the end of your mortgage term where possible to avoid prepayment charges, though a refinance can often be completed at any time.

Renewing Your Existing Mortgage

If your financial situation has changed since obtaining your mortgage, then renewing your existing loan could be the best way to move forward. A renewal starts a new term and current rate with the existing balance of your mortgage but does not require full documentation and an application to process.

I’d love to connect to explore which mortgage products, rates and terms are best for you and your unique real estate situation. I can shed light around the changing mortgage terrain and help to determine whether you’ve been impacted by the July 1st changes implemented by the CMHC.

Connect today 250-804-9874 or

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